It wasn’t long ago when consumers seeking lactose-free dairy products had limited options. Today, these offerings are abundant, with more than 98% of retail outlets providing lactose-free dairy milk. Major brands also are producing more lactose-free and private-label options. In fact, sales of lactose-free dairy products are trending upward and growing, according to Circana, a Chicago-based market research firm.

“Across the Dairy15, lactose-free products are up +8.5% in dollars and +3.8% in volume [for the 52 weeks ending July 13],” notes John Crawford, Circana’s senior vice president for Client Insights-Dairy. “Lactose-free milk, up +8.2% in dollars, +3.8% in volume. Lactose-free yogurt, up +41% in dollars, +40.7% in volume.

“Lactose-free sour cream, up +12% in dollars, +14.1% in volume,” Crawford adds. “Lactose-free cottage cheese is up 30.8% in dollar, +29.9% in volume,” for the 52 weeks ending July 13.  

Albeit from a small base, while lactose-free dairy products only represent 4.6% of total Dairy15 sales, dairy processors can capitalize on the positive growth trajectory of lactose free.

Petaluma, Calif.-based Clover Sonoma offers a line of Organic Lactose Free Milk in Whole and 2% Reduced Fat in three flavors: Chocolate, Vanilla and Strawberry. Pasture raised from local organic farms, these milks are available throughout California at natural grocers including Whole Foods Market and Sprouts.

Clover Sonoma Vice President of Marketing and Innovation Susan Shields states: “Research shows a demand for value-added milk across the organic, lactose-free and flavored categories. With this lineup, we deliver on all of those requests and more. Those looking for lactose-free options can still benefit from the nutritional benefits milk has to offer, like protein, calcium and vitamins A and D while our flavored milks also offer a delicious option with no or low added sugars.”

Today, between 30 to 50 million Americans, or 10-15% of the population, are lactose intolerant, according to the National Institute of Diabetes and Digestive and Kidney Diseases (NIDDK). Yet, NIDDK suggests consumers can still enjoy dairy by trying to:

• Drink small amounts of milk at a time and have it with meals.
• Add milk and milk products to your diet a little at a time and see how you feel.
• Try eating yogurt and hard cheeses, like cheddar or Swiss, which are lower in lactose than other milk products.

Bring on the lactose-free with added functionality

As demand for nutrient-dense food and beverage options continues to rise, food and beverage manufacturers are developing new products which check all the boxes: high protein, less sugar, lactose-free and designed for weight management and GLP-1 users.

In August, Danone North America introduced its new cultured dairy line, OIKOS FUSION.  The functional drinks are designed to support muscle maintenance, digestive health challenges and for those on weight loss journeys including GLP-1 users who face unique nutrition challenges, the White Plains, N.Y., and Louisville, Colo.-based company says.

OIKOS FUSION delivers 23 grams of protein, 5 grams of prebiotic fiber, and key vitamins like D, B3, and B12, in a lactose-free, zero grams of added sugar functional beverage. It is available in three flavors, Strawberry, Mixed Berry and Vanilla, and contains 130 calories in each 7-ounce, 130-calorie bottle.

Danone partnered with nutrition scientists and dietitians to create the new line, made with a proprietary trifecta blend of whey protein, leucine and vitamin D to support consumers’ evolving health and wellness journeys through innovation, the company stated.

“Pairing Danone's decades of science expertise with the OIKOS' brand's emphasis on strength and high-quality protein enabled us to create something truly unique for people looking to maintain muscle mass while on a weight loss journey,” Rafael Acevedo, president of Yogurt at Danone North America, says. “The growing need for tailored nutrition solutions for people experiencing muscle mass loss is something we can expertly tackle. …We believe weight loss isn't only about taking things away.”

Breaking down lactose by adding the lactase enzyme

Making a lactose-free dairy product means removing or breaking down the lactose, a type of sugar found in milk and other dairy products. This is usually done by adding lactase, an enzyme which breaks down lactose into simpler sugars (glucose and galactose) that are easier for the body to digest. Alternatively, some products use filtration methods to remove lactose.

Lactose-free is not the same as dairy-free. The main difference between the two is that lactose-free products are typically made from real dairy milk or using filtration methods, while dairy-free products are made from plant sources such as nuts and grains, the Lactaid website reports.

“While all dairy-free products are lactose-free, not all lactose-free products are dairy-free,” notes Ft. Washington, Pa.-based Kenvue Brands LLC, which manufactures Lactaid products.

Founded in 1974 by third-generation dairyman Alan E. Kligerman, Lactaid produces 100% real milk, just without the lactose and without the stomach discomfort. Among the more than 50 SKUs Lactaid manufactures are milks, eggnog, ice creams, sour creams and cottage cheese.

Yet, lactose-free doesn’t mean free from nutritional value. These products typically retain the same nutritional value as their regular dairy counterparts, including calcium and vitamin D, Circana’s Crawford notes.

When asked if there’s a discernible taste difference when consuming traditional dairy versus lactose-free dairy, Crawford responds: “There is a slight taste difference in lactose-free dairy products, in particular ultra filtered milk products like fairlife. The products do perform similarly to non-lactose-free dairy.”

Filtering out the lactose 

Besides preventing bloating and digestive discomfort, lactose-free products have an extended shelf-life due to ultra filtration or ultra pasteurization methods, Crawford says.

Additionally, dairy processors who wish to further their bottom line by making lactose-free dairy products have several methods at their disposal.

They include adding lactase enzymes to milk; ultrafiltration, which uses a membrane to separate lactose from milk; chromatographic techniques, which uses different column types, like cation exchange columns, to separate milk components like lactose; and nanofiltration, which separates lactose from other milk components.

Making products that are lactose-free also can be lucrative for dairy processors. For the 52 weeks ending July 13, lactose-free products far surpassed dollar sales of white milk.

Crawford explains: “Dairy white milk was up +4.8% in dollars, -0.2% in volume. Farilife white milk was up +33.6% in dollars, +27.6% in volume and Lactaid white milk was up  +6.5% in dollars, +6.8% in volume.

“With lactose free only representing 4.6% of Dairy15, there is nothing but upside for lactose-free dairy,” Crawford concludes. “More brands are investing in lactose-free capabilities along with private label. I expect lactose free to continue to see double-digit growth in most dairy categories as capacity continues to come online.”